PSA Peugeot Citroen is betting on new models like the C-Triomphe to return to profitability in China, the company said in introducing the new sedan over the weekend.

The C-Triomphe, whose name in Chinese is Kai Xuan, is the first Citro?n model introduced in the country since 2003 and the second model rolled out by Peugeot in China this year after the release of the Peugeot 206 in January.

"We want to change the image of the company in China," Claude Satinet, head of Citroen, said Saturday in an interview in Shenzhen. "We're quite confident that we'll return to profitability at the end of the year."

Peugeot is trying to reverse two years of losses at its joint venture, Dongfeng Peugeot Citro?n Automobile. The venture, based in Wuhan, sold 16,092 vehicles in January after raising sales of Peugeot and Citroen vehicles by 58 percent last year, to 140,399.

Still, Dongfeng Peugeot continues to trail other Western carmakers in China, holding about 4 percent of the local car market last year, compared with 17.3 percent for Volkswagen and 11.2 percent for General Motors.

"Peugeot, which used to be lukewarm in China, is gearing up now," said Yale Zhang, an analyst with CSM Asia in Shanghai. "Peugeot may record faster sales growth as its unique exterior designs are becoming more acceptable to Chinese consumers along with rising car penetration rate."

Peugeot hopes to sell about 30,000

C- Triomphe models this year and 50,000 next year, said Liu Weidong, general manager of Dongfeng Peugeot Citro?n. The venture expects to increase total sales of Citro?n and Peugeot brand cars to 200,000 in China this year, Liu said.

Peugeot's chief executive, Jean-Martin Folz, is betting that China, South America and Eastern Europe will propel growth at Peugeot, which has forecast a 10 percent rise in sales outside Europe in 2006. Citroen started the venture with Dongfeng Motor in 1992. Peugeot agreed to upgrade cooperation to include the Peugeot brand and invested 625 million yuan, or $77.6 million, to raise its stake to 50 percent in 2002.

"We are just beginning now to come with new cars," said Satinet, the head of Citro?n. "That means we want to recover our market share."

The C-Triomphe, he said, "will be positive for the profitability because if we are higher in the range with a more model car, that means more profit."

Peugeot produces Peugeot 307 and 206 cars in Wuhan as well as the Citro?n models Fukang, élysée and Xsara and the minivan Picasso. Dongfeng Motor also has partnerships with

Nissan Motor and Honda Motor.

Peugeot had only the Fukang in China for six years before it introduced the Picasso in 1998 and the élysée in 2002. The company is expanding its product range to tap middle-class consumers as expansion in China raises personal incomes.

The C-Triomphe, for which the company started to accept orders last week, will be priced at around 200,000 yuan, Gilles Debonnet, general manager of Dongfeng Citro?n said at a news conference on Saturday. The car will be formally marketed in China in May.

Dongfeng Peugeot plans to double capacity this year, to 300,000 units, after sales approached the maximum capacity last year. To keep up with rising demand, the venture has expanded capacity to 210,000 units.